Srinagar: Directorate of Handicrafts and Handloom, Kashmir, has blacklisted and deregistered The Kashmir Art Bazaar, a showroom located in Konchipora, Tangmarg, after a confirmed case of fraudulent sale of a machine-made carpet falsely passed as a GI-certified, hand-knotted Kashmiri carpet for ₹2.55 lakh.
As per Order No. 10-HD(QC) of 2025, issued on July 22 by the Director, Handicrafts and Handloom, the seller had affixed a counterfeit QR code resembling the official label issued by the Indian Institute of Carpet Technology (IICT), intending to deceive the buyer into believing the carpet was an authentic GI-certified product.
“A formal criminal complaint has been ordered and further legal proceedings under the GI Act and Bharatiya Nyaya Sanhita are being pursued,” a departmental spokesperson confirmed. A team from the Department’s Quality Control Wing also visited the location to carry out the blacklisting process on-site.
The case came to light after a tourist, Syed Furqan Alam, lodged a complaint with the IICT, Srinagar, stating that he had made an advance payment of ₹25,000 for the purchase of a carpet worth ₹2.55 lakh from the said showroom. The seller had allegedly presented a certificate and QR label claiming GI authenticity. Upon investigation, IICT confirmed the QR label was forged, triggering an inquiry by the Quality Control Division.
During the investigation, the department seized the carpet and issued a show-cause notice to the proprietor. In his reply, the seller denied any wrongdoing and claimed the sale was cancelled after informing the buyer the product wasn’t GI-certified. However, this defense was contradicted by photographic evidence and IICT’s findings, which verified the fake label had indeed been affixed to a machine-made carpet.
“The Director concluded that the act was a deliberate attempt to exploit the GI reputation of Kashmir’s handicrafts and mislead the buyer,” the spokesperson added. “The reply submitted by the seller was found misleading and unsatisfactory.”
Citing violations of Sections 6 and 7 of the J&K Registration of Tourist Trade Act, 1978, the Directorate ordered immediate blacklisting and deregistration of the showroom. It also directed that a formal complaint be filed with the office of the Senior Superintendent of Police, Tourism Enforcement, for further investigation into the case, including the possible existence of a wider racket involving fake GI labels.
The department noted that the seller, upon realizing the fraud had been exposed, tried to tamper with the evidence by removing the fake QR label. However, the original evidence submitted by the complainant, along with technical validation from IICT, confirmed the malpractice.
Reiterating the Department’s commitment to preserving the authenticity of Kashmir’s traditional crafts, the spokesperson warned, “Such fraudulent acts severely damage consumer trust and threaten the livelihood of thousands of artisans. Showrooms found engaging in such deceit will face strict penalties including blacklisting and deregistration.”
The official also urged tourists and buyers to remain vigilant and to report any suspected cases of misbranding or fake labeling to the Handicrafts and Handloom Department.